IS THERE ANY DIFFERENCE?
A lot of times I get people asking me what is the difference between Forex and Stock Market, ooh!! well I thought I should just write this very short article explaining the difference, I am mainly in Forex market. This article is not about Forex Vs Stock Market or which one is better than the other, it is just to clarify so that you may know the difference between Forex and Stock market and how they both operate or work.
- Forex market is NOT based on any business or investing in anyone’s business but currencies of different countries, there is NO physical or centralized location for this type of market, but it is legal and profitable though, online Forex brokers bring the buyers and sellers together and offer the trading platform where the buying and selling takes place.
- What is traded in Forex market can be easily turned back into cash very fast, Forex market is very liquid.
- Any investor from any country using any currency can participate in the Forex market because it is global.
- There is NO recession in Forex market, when one currency is on the fall, the other one is on the rise providing opportunities to BUY and SELL and make money in any market condition.
- There are NO expensive brokerage fees and the start-up cash is affordable and minimal.
- No need to investigate about company history.
- The fact that Forex market is not based on any business also play a big part in it being opened 24 hours 5 days a week giving anyone an opportunity to trade at any time, because when one market closes, another one is opening, market has four trading sessions that open and close at different times, buying and selling is located at different time zones and that is an advantage not to mention the money that can be made in this market (if you know what you are doing).
- Government and Central banks such as European Central bank, Bank of England and Federal reserve are frequently involved in Forex market.
- The amount traded in Forex market is so huge, it is basically in trillions and it is higher than any amount traded in any Stock market of any country, reason being the Forex market is a global market, but no one should just open a trading account without proper Forex training and understanding the global currencies.
- Stock market is based on businesses, and it can only be done in that particular country using the currency of that country.
- The brokerage fees are higher.
- Its operations follow the business hours, like closed on banking holidays and weekends.
- Stock market has limits on when you can place trades.
- In stock market you buy a share and can sell it if it appreciates in value.
- When trading stocks, you are trading shares of companies and you need to do a lot of research about those companies.
Thank you for stopping by, if you need more detailed information about Forex market, feel free to contact me Admin@learnfxtrading.net. I hope you find this post helpful, if you do , please kindly share it using the share buttons below.